Core Investment Features & Model Platforms

Core Features of Managed Funds

Risk Management

While asset allocation significantly impacts performance, it also impact portfolio risk.   While an investment advisor may not be able to control the market, they are able to control investors’ risk.  Therefore, when a client completes the Risk Profile Questionnaire, and partners with a financial representative, such as Mark Canada, a target risk level is clearly established. 

A strategy of balanced diversification ad structured self discipline is employed that minimizes both portfolio volatility and the potential loss of capital.

Asset Management

What is Core and Satellite Investing?

Core and satellite builds on the concept of strategic asset allocation (SSA).  A core/satellite strategy combines passive “core” investments with active “satellites” that seek out performance, within the asset allocation model.  It involves balancing risk and return, asset class by asset class, to meet an investor’s risk/return profile.

Core:

The core forms the foundation of the strategy and represents the basic SAA, providing market returns (or Beta *1) at low risk.  The core investments achieve broad diversification across asset classes and allow the overall portfolio to achieve basic objectives set out by the SSA.

Satellite:

Satellites are typically more targeted and designed to outperform the core portfolio.  These investments are chosen with the expectation they will provide additional returns (or Alpha **2) above the market returns of the SSA.  Generally, these investments will incur more risk.

*1 Beta:  A measure of a fund’s sensitivity to market movements.  The beta of the market is 1.00 by definition.  A beta of 1.10 shows that the fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors remain constant.  Conversely, a beta of 0.85 indicates that the fund is expected to perform 15% worse than the market’s excess return during up markets and 15% better during down markets.

**2 Alpha:  the amount by which a fund had out-performed its benchmark, taking into account the fund’s exposure to market risk (as measured by Beta).  Alpha is also known as the residual return.

** Information provided by Morningstar.

 

Model Platforms Available

Core Mutual Fund Strategies

  • Core Current Income-Tax Exempt MF
  • Core conservative MF
  • Core Moderate MF
  • Core Moderate Growth MF
  • Core Growth MF
  • Core Aggressive MF

Core ETF Strategies

  • Core Conservative ETF
  • Core Moderate ETF
  • Core Moderate Growth ETF
  • Core Growth ETF
  • Core Aggressive ETF

Satellite Strategies

  • Tactical All Equity Strategy
  • Tactical Bond Strategy
  • Current Income Strategy
  • Absolute Return Strategy
  • Commodities Strategy
  • Inflation Hedged Strategy
  • Sector Rotation Strategy
  • Tactical Asset Allocation Strategy
  • High Yield Income Strategy